Question

Under the Articles of Confederation, the government was not allowed to regulate commerce which allowed states to trade unfairly with each other and with foreign nations. States having this authority to impose taxes caused1. trade to increase2. trade to decrease

Answer 1

Answer:

2) trade to decrease

Explanation:

Unfair trade practices always hurt those who wish to trade fairly and benefit those companies or individuals that are close to the authorities that impose the unfair trade practices. In other words, unfair trade practices are the result of public corruption, and both consumers and honest producers are hurt by them.

The Articles of Confederation didn't allow congress to regulate interstate commerce, resulting in unfair trade practices like discretionary tariffs imposed to hurt producers from other states and favor local producers who sold their products at higher than market prices, hurting local consumers.